Video Advertisers Say They’re Not Yet Effectively Reaching the Right Audiences

December 14, 2020

Xandr Important Steps Relevant Video Ad Experience Dec2020Some 8 in 10 US advertisers agree on the importance of reaching the right audience with their video ad efforts, but significantly fewer feel that they are able to do this effectively, finds Xandr in its 2020 Relevance Report [pdf]. Here’s a look at how advertisers are grappling with data compliance and measurement tactics to reach greater ad relevance.

Advertisers want consumers to have a great experience with their ads – and while the 200 US advertising TV and video ad decision-makers surveyed appear to know the necessary steps to creating that great experience, only a minority feel they are taking these steps effectively.

The vast majority (80%) of US respondents to the survey agreed that reaching the right audience is an important step to delivering a relevant video ad experience, but crucially only 2 in 10 (21%) felt that they are completing this step very effectively. This same gap appeared when respondents were asked about delivering effective creative (63% vs. 24%) and selecting media type (50% vs. 21%), which profiled as other key elements of delivering a relevant video ad experience.

Currently, more than half (55%) of US video ad spend is allocated towards audience-based buying – so how are US advertisers using this budget to improve their ability to reach the right audiences?

Data Investment

US advertisers surveyed for the report indicated a solid foundation for using data to create a more relevant advertising experience, with more than 9 in 10 claiming to have intermediate (51%) or advanced (41%) expertise in this area.

And, advertisers appear to be matching this expertise with investment. Some 8 in 10 (79%) have invested in data in the last twelve months, and in the same time period, half have invested in data partnerships, with 35% saying they have hired a data scientist. A further 30% have acquired a customer data platform – hoping to reap the many benefits CDP users report experiencing.

However, advertisers face somewhat of a catch-22 in their use of data to improve relevance for consumers who are increasingly aware of data privacy issues, with two-thirds (64%) of US respondents agreeing that consumers are at least moderately familiar with data privacy regulations. Indeed, 41% of the US advertisers surveyed said ensuring data compliance and identifying audiences across screens are top challenges.

A key marker of this increasingly data-conscious world is Apple’s decision to effect the default opt-out of its device identifier, IDFA (Identifier for Advertisers) next year. US advertisers reported several responses to this change at their company/main client, including reallocating spending to other channels without third-party cookies (36%), developing a more sophisticated tech stack (32%), and building an effective identity solution (33%).

Optimize and Measure

Across the global markets surveyed, 3 in 5 advertisers reported using data for campaign optimization. But beyond reliable data inputs, the report highlights advertisers’ need for outputs that can be leveraged to reach the right audience. Currently, only a minority (21%) of US respondents are very satisfied with their ability to optimize based on back-end results.

Similarly, just 23% of US respondents claimed to be very satisfied with their measurement solutions and end-of-campaign measurement data. To rectify this and draw deeper insights, about two-thirds of US advertisers are looking for data that ties to lower-funnel metrics and trusted consumer identity data.

Read the full report here.

About the Data: Findings are based on an August 2020 survey of 200 advertisers (50/50 agency/brand) who provide as TV or digital video decision-makers with at least $1 million in spend.


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